Please answer all the questions with complete explanation

Q.1 -

the current annual GNP of a country is 25 000 million and this GNP is predicted to increase by 13% each year, from the present population which is 40 million, the population is expected to rise by 2% a year. how many years will GNP per head of the population reach 700?

2. If perfectly competitive firms earn economic profit in the short run, then we would expect that in the long run

Multiple Choice

supply will decrease.

existing firms will leave the market

demand will decrease.

new firms will enter the market.

3. Which of the following is consistent with a perfectly or monopolistically competitive market?

Multiple Choice

marginal revenue lower than price for each firm

exit of small firms when profits are high for large firms

a small number of firms

zero economic profit for firms in the long-run

4. Because of the ease of entry into the market of monopoly, profits are competed away by the new firms.

True or False

True/False

5. A perfectly competitive firm

Multiple Choice

can influence industry price in a significant way, but cannot influence industry output.

becomes dominant in an industry through successful competition.

produces such a small share of industry output that it has an insignificant influence on industry price.

can influence industry output in a significant way, but cannot influence industry price.

6. Flour would be considered which of the following factors of production?

Multiple Choice

entrepreneurship

capital

land

labor

7. Economists use the three-step method to determine whether a firm is generating economic profits, economic losses, or zero economic profits at the ______.

a.profit-minimizing level of input

b.profit-maximizing level of input

c.profit-minimizing level of output

d.profit-maximizing level of output

8. Economists sometimes call zero economic profit a ______ rate of return.

a.normal

b.natural

c.neutral

d.negative

9.It is not likely that firms will either enter or leave the market ______.

a.at positive economic profits

b.at zero economic profits

c.at economic losses

d.at growing economic profits

10. ______ efficiency means that for the last unit produced, the Marginal Benefit to society = Marginal Cost of production.

a. Productive

b.Marginal

c.Modified

d.Allocative

11. ______ efficiency means that the firm is producing at the lowest possible cost per unit.

a.Marginal

b.Modified

c.Allocative

d.Productive

12. Marginal revenue in a perfectly competitive firm is equal to the price of the good.

a.True

b.False